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U.S. Pushes Iraq to Reopen Oil Pipeline to Turkey

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Oil & Gas 22 Feb 2025 02:21 PM IST Reuters

The United States is urging Iraq to restart a vital oil pipeline to Turkey and crack down on Kurdish oil smuggling to Iran, according to insider reports. The pipeline, which connects Iraq’s northern oil fields to the Turkish port of Ceyhan, has been shut down since March due to a dispute over export revenues. Restarting it would help Iraq regain lost oil sales and provide Turkey with a steady supply of crude.

At the same time, the U.S. is concerned about Kurdish oil being illegally sold to Iran. These shipments are seen as a way for Iran to bypass American sanctions, and Washington wants Iraq to tighten controls to stop them.

For Iraq, the situation is tricky. The Kurdish region relies heavily on oil money, and Baghdad doesn’t want to strain its already delicate relationship with the Kurds. Balancing U.S. demands while maintaining political stability at home will be a challenge.

Experts say reopening the pipeline could help stabilize global oil prices and boost Iraq’s economy. But cracking down on Kurdish smuggling without causing more political tensions won’t be easy. The next few weeks are likely to be crucial as talks continue to find a solution.